Accounting Procedures Allow a Business to Evaluate Their Inventory at LIFO

Multiple Choice

Accounting procedures allow a business to evaluate their inventory at LIFO (Last In First Out) or FIFO (First In First Out) .A manufacturer evaluated its finished goods inventory (in $ thousands) for five products both ways.Based on the following results,is LIFO more effective in keeping the value of his inventory lower? What is the degree of freedom?

A) 4
B) 5
C) 15
D) 10
E) 9